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1 year ago

Which one of the following is common between optimization using total value and optimization using marginal analysis?

Business

1 answer:

Temka [501]1 year ago

5 0

Common between optimization using total value and optimization using marginal analysis is:

Both techniques require the conversion of all costs and benefits into a common unit of measurement.

What is the principle of optimization at the margin?

The Principle of Optimization at the Margin states that an optimal feasible alternative has the property that moving to it makes you better off and moving away from it makes you worse off.

Optimization using total value:

calculates the change in net benefits when switching from one. alternative to another.

optimization using marginal analysis:

calculates the net benefits of. different alternatives.

Total Value analysis :

has a wide range of applications. The analysis can be used to assess an organization's key impacts, or provide more detailed information such as an assessment of the life cycle impacts of a product.

marginal analysis:

is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Companies use marginal analysis as a decision-making tool to help them maximize their potential profits.

Learn more about optimization:

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During 2018, businesses may elect to immediately expense up to $__________ of qualified real property placed in service that yea

alex41 [277]

Answer:

$1 million

Explanation:

Section 179 deduction of the IRS code was enacted to help small business owners take depreciation deductions for certain assets ( capital expenditure I.e. the money spent on acquiring and maintaining fixed assets such as buildings and equipments ) in one year rather than continuous depreciation over a long period of time.

The new law increased the maximum deduction from $500,000 to $1 million.

For example: lets say you buy a computer for your office, under section 179 you can deduct the full cost of your computer in one year. This a very okay because the life span of your computer is short

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3 years ago

Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.

kirza4 [7]

Answer:

$10.08

Explanation:

First, find dividend per year;

D3 = 0.50

D4 = 0.50(1.35) = 0.675

D5 = 0.675 (1.35 ) = 0.9113

D6 = 0.9113 (1.07) = 0.9751

Next, find the present value of each dividend at 13% rate;

PV (of D3) = 0.50/(1.13^3) = 0.3465

PV (of D4) = 0.675/(1.13^4) = 0.4140

PV (of D5) = 0.9113/(1.13^5) = 0.4946

$PV (of D6) = \frac{\frac{0.9751}{0.13-0.07} }{1.13^{5} } \\ \\ = \frac{16.2517}{1.8424}$

PV (of D6 )= 8.8209

Add the PVs to find the stock price;

= 0.3465 + 0.4140 + 0.4946 + 8.8209

= $10.08

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3 years ago

A company uses the weighted-average method of inventory valuation under a periodic inventory system. The company began the year

Lady bird [3.3K]

Answer:

$935.61

Explanation:

Firstly, we need to calculate weighted average inventory cost at every time anchors (purchase - in or sell - out)

At time t = 1, 64 units @ 5 per unit.

At time t = 2, 64 + 110 = 174 units @ (64 x 5 + 110 x 5)/(64 + 110) = 5 per unit.

At time t = 3, 174 - 90 = 84 units @ 5 per unit.

At time t = 4, 84 + 55 = 139 units @ (84 x 5 + 55 x 6)/(84 + 55) = 5.40 per unit.

At time t = 5, 139 - 90 = 49 units @ 5.40 per unit.

Cost of goods sold for the year = 90 x 5 + 90 x 5.40 = $935.61

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3 years ago

Woolman College is considering the construction of a new women’s dormitory. The dormitory will have 80 rooms and the ability to

lisov135 [29]

Answer:

IF WOOL MEN CHARGES $3100 PER STUDENT,THEN CONTRIBUTION PER STUDENT=

CHARGES PER STUDENT =$3100

LESS:VARIABLE COST

SUPPLIES ($350)

ASSISTANT SALARY ($155)

($7000/45)

CONTRIBUTION $2595

COST PER STUDENT:

SUPPLIES $350

OFFICE ($7000/45) $155

INSURANCE ($40000/240*) $167

REPAIR ($32000/240) $133

AND MAINTENANCE

DEPOSIT ($60000/240) $250

TOTAL $1055

Explanation:

The given table will elaborate it more.

7 0

2 years ago

Which type of investment income happens when an investor sells ownership in an equity investment that's gained value? (Select th

Westkost [7]

Answer:So, a capital gain is a profit that occurs when an investment is sold for a higher price than the original purchase price. Investors do not make capital ...

Explanation:

4 0

2 years ago

Read 2 more answers

Which one of the following is common between optimization using total value and optimization using marginal​ analysis?

Which one of the following is common between optimization using total value and optimization using marginal analysis?